New public sector risk management framework launched

CLOUDINE MATOLA AND TENDAIISHE NYAMUKUNDA

Finance Minister Mthuli Ncube (pictured) yesterday launched the risk management  framework and guidelines in the capital Harare,  which are intended  to assist government institutions  in managing their risks  and accomplishing their goals.

It comes at a time when operations in the public sector are growing more intricate.

The accomplishment of public sector goals as stated in national development strategies depends increasingly on effective risk management in the context of this expanding complexity.

Consequently, implementing proactive risk identification, analysis, evaluation, treatment, management, and communication of important program or organizational risks to those in charge of governance contributes to increased operational and service delivery efficiency in the public sector.

These guidelines are intended for the public sector and are based on Statutory Instrument 135 of 2019, Public Finance Management (General) Regulations section 50, which mandates that ministries, departments, and agencies (MDAs) implement risk management.

According to Ncube, the framework and guidelines will guarantee that MDAs enhance their risk management procedures.

He claimed that this will greatly aid in resource management because the government uses money that is provided by taxpayers.

“This will go a long way in managing efficiently resources that the government raises from the public through taxpayers money, so we need this management framework to manage these resources efficiently, deploy them efficiently.

“One of the risks for instance that we will manage the risk of initiating risky projects, projects that can never be completed, so can you imagine if a project is not completed, that’s a waste of public resources so clearly the framework will go a long way  in dealing with risk such as slope of projects,” he said.

Furthermore, he stated that in order to maintain competitiveness and deliver well-managed projects and programs on schedule and within budget, it is necessary to cut costs.

Within the framework, MDAs will, according to Ncube, aim to reduce their financial exposure, uphold moral principles, and never take on projects that  compromise their financial solvency.

According to Ncube, the framework will deal with matters like the country’s reputation, improving service delivery to the populace, and financial responsibility.

“The first concern is our reputation. Each MDA should be concerned about its standing as it impacts on the government. As such, the quality of our services to the people is paramount importance,

“The second concern is our people. Much of our work is about enhancing service delivery to the people of Zimbabwe; therefore, all that we do must have an impact on the wellbeing of the citizens hence the need to prioritise risk management.

“The third concern is our financial prudence. The funds we utilize as a government are public funds and this requires transparency and accountability,” Ncube said.

He added: “The fourth concern is the impact of our projects and programs. We are entrusted with funding to generate positive change in the lives of our people in resource-constrained environments. Often time’s government contracts private players to deliver goods and services to citizen. Sometimes these are poor quality thus working against the public good.”

According to him, the framework will guarantee that projects carrying an excessive amount of risk won’t be started, and the MDAs must monitor the advancement of each project and program.

“So as to minimize such risks, MDAs need to anticipate and manage all projects and program risks at the pre-proposal, proposal, and inception stages and use relevant management information systems to track progress. This reduces losses because it ensures that no projects with financial or delivery risks are too high are not undertaken, thus ensuring the much needed application of ethical standards in delivering their work,” he said.